Financial Reporting: DoD's Fiscal Year 1996 Financial Statements Inventory Reporting Does Not Meet Standards
GENERAL ACCOUNTING OFFICE WASHINGTON DC ACCOUNTING AND INFORMATION MANAGEMENT DIV
Pagination or Media Count:
DOD did not fully comply with SFFAS No. 3 in fiscal year 1996. Its consolidated and component financial statements misclassified operating materials and supplies and some equipment as inventory and did not include all operating materials and supplies. For fiscal year 1996, the Army, Navy, and Air Force general fund financial statements collectively reported 115.6 billion of inventory. The Army and Air Force did not report any amounts for operating materials and supplies and the Navy reported only 27,000. One reason for these errors is that DODS Guidance on Form and Content of Financial Statements for Fiscal Year 1996 Financial Activity and its accounting policy misinterpreted and were not consistent with the accounting standard. As a result, DODS fiscal year 1996 financial statements overstated inventory, understated operating materials and supplies, and overstated expenses.
- Economics and Cost Analysis
- Government and Political Science